The government has incorporated provision of penalties for States and Insurance Companies for the delay in settlement of insurance claims under the Pradhan Mantri Fasal Bima Yojana (PMFBY). According to the new guidelines, the farmers will be paid.....interest by insurance companies for the delay in settlement claims beyond two months of prescribed cut-off date.

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

The government has incorporated provision of penalties for States and Insurance Companies for the delay in settlement of insurance claims under the Pradhan Mantri Fasal Bima Yojana (PMFBY). According to the new guidelines, the farmers will be paid____interest by insurance companies for the delay in settlement claims beyond two months of prescribed cut-off date.

A	5%
B	10%
C	20%
D	12%

Explanation:

Detailed explanation-1: -Eligibility: Intimation may be given within 72 hours by the farmer to Insurance Company. Loss assessment will be completed within 15 days after the damage. The On-Account payment would be disbursed by the Insurance Company without waiting for the receipt of final share of Govt.

Detailed explanation-2: -There is no upper limit on Government subsidy. Even if balance premium is 90%, it will be borne by the Government. Earlier, there was a provision of capping the premium rate which resulted in low claims being paid to farmers. This capping was done to limit Government outgo on the premium subsidy.

Detailed explanation-3: -Pradhan Mantri Fasal Bima Yojana covers several unforeseen perils that cause crop damage, prior to sowing and post harvesting as well. These include acts of God such as cyclones, storms, hail, lightening, and so on.

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